Cattle futures lower, hogs mixed ending the week
Live cattle futures were lower, pressured by technical selling and spillover from the broader market. The Dow Jones Industrial Average had a wide-ranging session following the announcement President Trump and the first lady tested positive for COVID-19. October was down $.35 at $108.17 and December was $.72 lower at $111.10. The President and First Lady tested positive for COVID-19 this morning leading to a drop in the Dow Jones and weakening in the job market.
Feeders were down on the same factors as the live pit, picking up additional pressure from the week’s strength in corn. October was $1.02 lower at $139.90 and November was down $1.37 at $139.87.
A quiet afternoon for cash cattle trade. Live deals in Kansas and Texas were at $107, about $.50 lower than last week’s weighted averages. It’s been another week with a light to moderate trade taking place just about every day.
In Missouri, medium and large 1 feeder steers weighing 600 to 700 pounds brought $133 to $179.50 and medium and large 1 heifers ranging from 500 to 600 pounds brought $120.50 to $147.00.
At the Missouri Hay Market, hay business in the state has been slow with large day and night swings. Cooler temperatures have arrived with the new month meaning pasture conditions are going down despite light to moderate rainfall. Alfalfa Supreme medium squares brought $200 to $250. Small squares brought $7 to $9 per bale. Alfalfa Premium medium squares brought $160 to $200. Alfalfa good large rounds brought $120 to $160, small squares brought $5 to $7 per bale. Alfalfa fair large rounds brought $100 to $125. Alfafla/Grass Mix, good/premium small squares brought $6 to $8 per bale. Mixed grass, good/premium large rounds brought $80 to $120.
Boxed beef closed firm to sharply higher with good demand for light offerings. Choice closed $.10 lower at $218.88 and Select closed a penny lower at $207.61. The Choice/Select spread is $11.27.
Estimated cattle slaughter is 117,000 head – up 5,000 on the week and 7,000 on the year. Saturday’s estimated kill is 70,000 head – up 13,000 on the week and down 5,000 on the year.
Lean hog futures were mixed on spread adjustments and a lack of follow through buying in some contracts after a higher start to the session. Cash and wholesale business were bearish during the session, but DTN says Germany did announce several new cases of African swine fever in wild boars and the trade is watching the export market closely. October was $.35 higher at $74.50 but December was $.35 lower at $62.50.
Cash hogs closed lower. Interest in the pork industry is targeted at the supply and demand situation. China’s rebuilding of their swine heard and new African Swine Fever cases in Germany also raise questions on the global market. The supply of market-ready hogs is more than ample. That’s adding more pork to the market. Demand uncertainty remains and is limiting the market’s ability to push prices higher.
Barrows and gilts at the National Daily Direct closed $.89 lower for a weighted average of $63.52; the Iowa/Minnesota closed $2.11 lower for a weighted average of $63.16; the Western Corn Belt closed $1.85 lower for a weighted average of $63.16. Prices at the Eastern Corn Belt was not reported due to confidentiality.
For the week, early weaned pigs were steady to firm and all feeder pigs were $2 per head higher. The USDA says demand was moderate for moderate offerings. Receipts included 37 percent formulated prices. Total composite formula range for early-weaned pigs was $15.97 to $42.53 for an average of $32.48 and the total composite cash range was $2.50 to $20 with a weighted average of $14.75. Total composite weighted average for all early-weaned pigs was $32.43 and the weighted average for all feeder pigs was $41.47.
Pork values closed sharply lower – down $2.57 at $73.51. Hams dropped more than $16. Bellies were also lower. Picnics were firm. Ribs, butts, and loins were higher to sharply higher.
Estimated hog slaughter is 464,000 head – up 2,000 on the week and down 18,000 on the year. Saturday’s estimated kill is 213,000 head – down 7,000 on the week and 17,000 on the year.